Adopt Resolution #21-101 Approving Preliminary Plat for Riverstone South Addition (Project No. 19-152) and Associated Approvals; Case of Capstone Homes

• Accept Final Environmental Assessment Worksheet (EAW) and Determine Environmental Impact Statement (EIS)
• Adopt Ordinance #21-03 Amending Official Zoning Map
• Approve Deviation from Street Name Grid
• Approve Preliminary Plat

The purpose of this case is to consider Preliminary Plat Approval for Riverstone South Addition by Capstone Homes. This is the most important step in the approval process. This approval grant the project entitlement, which essentially means that the layout and number of lots is approved. The next step (Final Plat) simply is the construction drawings for what was previously approved. Council should not expect to be able to change number of lots, lot sizes or general layout after this point unless physical conditions as part of final design are discovered.  

This case is the culmination of over a year of collaboration and land use/small area planning for an area south of Highway 10 and east of Bowers Drive. Attached is a 'Planning Framework' that summarizes the work of the initial planning in 2020 that led to the current plan set. 

Primarily due to the funding plan for Riverdale Drive, this project is not likely to begin construction this year (2021). If the City is successful in securing funding for Riverdale Drive, the project would likely begin in 2022. A general schedule is below.
 

Preliminary Plat Approval (current step)	April 2021
Riverdale Drive Funding Decision	July 2021
Tree Preservation Funding Decision	July 2021
Final Plat Approval	Fall 2021
Tree Clearing Begins	January 2022
Overall Project Begins	Spring 2022

Notification and mailings were provided with the Public Hearing held by the Planning Commission. Notification is not required for this case. 

Plat/Subdivision

The project itself is a 243 lot, detached single-family subdivision. The proposal requires a Zoning Amendment to allow for smaller lot sizes (40 foot wide [detached townhomes], 55 foot wide and 65 foot wide lots. After significant public engagement, especially with the Bowers Drive Neighborhood, there appears to be general support for this layout in exchange for the larger tree preservation area (7 acres). 

Riverdale Drive

Riverdale Drive needs to be extended from Llama Street to Bowers Drive in order to serve this area. The City Council has previously approved a Cost Share Framework between the Developer (Capstone Homes), Owner (Pearson Properties of Ramsey) and the City. This is a non-binding framework, but sets important expectations. The City has applied for a $1.25M grant from the Minnesota Department of Transportation (MnDOT). If successful, the City will begin plan preparation. 

Approvals are set up in such a way that the City is not liable for the costs of Riverdale Drive unless additional funding is secured. If unsuccessful in the current grant application, the project will simply be delayed or the cost share framework simply renegotiated. 

Park Dedication

At the recommendation of the Park and Recreation Commission, Park Dedication is planned to be satisfied by the following.

• 1 Acre of Land Dedication
• $350,000 Cash Contribution (for purposes of developing the 1 Acre Park)

Tree Preservation

A key component of public support of the project was to preserve an area of forest on the project site beyond the minimum requirements of City Code. The Planning Framework articulates that a component of allowing smaller lot sizes was to preserve an area of forest more than the minimum required by the City's current Tree Preservation Code. 

Using the Planning Framework as a starting point for discussion, the Developer ultimately proposed preserving 7 acres of the existing forest. However, the Developer feels that the value of this land exceeds the value of the trade off of smaller lots in exchange for additional tree preservation. In consideration, the Developer is asking for a payment of $350,000 for this area. The City Council previously reviewed this concept as part of the Planning Framework.

The City Council previously authorized Staff to apply for 2 natural resource grants. Unfortunately, the City was not able to secure an appraisal to support the $350,000 request. Staff will be forwarding a revised funding proposal, likely the Anoka County HRA, at a future date. The Preliminary Plat Resolution clearly articulates that funding should come from an outside source. By approving the Preliminary Plat, the City Council is not encumbering any City Funds. 

For clarity, Staff highly recommends against any further credit to Park Dedication for purposes of acquiring the Tree Preservation Area. 

Environmental Review

The project has completed an Environmental Review Worksheet (EAW). The EAW has gone through the Minnesota Environmental Quality Board (EQB) review process. It appears that the project meets all applicable environmental regulations and no further environmental review is recommended. 

All costs associated with processing the Application are the responsibility of the Developer. 

The City Council has previously agreed to a Cost Share Framework for Riverdale Drive, to be finalized at a later date.

The City Council has previously agreed to the concept of a $350,000 payment for the 7 acre tree preservation area. 

The Planning Commission recommends approval of this project.

The Planning Commission recommends that the City NOT change the name of Unicorn Street to Pearson Street (technically denied a Variance to this request). 

The Park and Recreation Commission recommends that Park Dedication be satisfied through the dedication of a 1 Acre Parcel and cash contribution of $350,000.

The Environmental Policy Board recommends that the City preserve the 7 acre Tree Preservation Area. 

Separate Motion #1: Motion to adopt Resolution #21-101approving Preliminary Plat and associated approvals for Riverstone South, contingent upon compliance with Staff Review Comments and subject to final review by the City Engineer.

-AND-

Separate Motion #2: Motion to waive the City Charter to read the ordinance aloud and adopt Ordinance #21-03 amending Official Zoning Map. 

Roll Call Vote:

Councilmember Musgrove
Councilmember Specht
Councilmember Woestehoff
Councilmember Heineman
Councilmember Riley
Councilmember Howell
Mayor Kuzma